The economy begins to slow and costumer demand falls, and business inventories begin to build. In response, businesses begin to cut bacj on the hours that their employees work and they may begin to lay people off. With less money in their pockets, workers spend less, sales fall, more inventories pile up, and soon, businesses start laying even more people off. But this means even less money gets spent by consumers, even lower sales, less production and still more layoffs. This circling around the recessionary drain hits the bottom line of almost every business very hard, and because, as we never become tired of observing in this lecture course, stock prices are ultimately driven by earnings, stock prices must inevitably fall during a recession.
|Penerbit/Pengarang||:||Prof Peter Navarro|
|Jumlah Halaman||:||88 Halaman|
|Ukuran File||:||6,27 MB|